MarketsT-Bills

CBK’s Treasury Bills Auction Surpasses Expectations to Collect Ksh.45.3 Billion

November 17, 2023
671 1 minute read
Investors Heavily Shun 182, 364-day T-Bills Even as Shilling Holds Steady
National Treasury Building along Harembee Avenue - Nairobi

The Central Bank of Kenya (CBK), the principal fiscal agent of the National Treasury, recently held an auction for Ksh.24 billion worth of Treasury Bills. The auction included 91-day, 182-day, and 364-day papers, offered at Ksh.4 billion, Ksh.10 billion, and Ksh.10 billion respectively.

Overwhelming Response

Contrary to expectations, the 91-day paper attracted an overwhelming Ksh.33.1 billion, significantly surpassing its initial offer. The 182-day paper also performed well, attracting Ksh.9.3 billion. However, the 364-day paper saw a less enthusiastic response, attracting a mere Ksh.2.8 billion.

Despite the varying responses, the total amount accepted by the CBK reached an impressive Ksh.45.3 billion, almost double the initial auctioned amount of Ksh.24 billion. This indicates a strong investor confidence in the country’s short-term government securities.

Interest Rates

The market weighted average interest rates for the three papers were 15.3%, 15.4%, and 15.6% respectively. These rates are a reflection of the current economic conditions and the government’s fiscal policy.

Implications and Future Outlook

The success of this auction demonstrates the robustness of Kenya’s financial market and the confidence of investors in the government’s fiscal policies. It also underscores the effectiveness of the CBK in managing the country’s monetary policy.

Moving forward, the government’s focus on enhancing education and adopting innovative, data-driven approaches to problem-solving in the security sector is expected to further bolster investor confidence.

The CBK’s successful auction is a positive sign for Kenya’s economy, demonstrating both the strength of its financial institutions and the confidence of its investors. As the government continues to implement its Bottom Up Economic Transformation Agenda, it is expected that these positive trends will continue, contributing to overall stability and growth.

November 17, 2023
671 1 minute read
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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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